Compared to Estimates, Lincoln National (LNC) Q3 Earnings: A Look at Key Metrics
Lincoln National (LNC) reported $4.67 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 0.9%. EPS of $0.23 for the same period compares to -$10.23 a year ago.
The reported revenue represents a surprise of -1.63% over the Zacks Consensus Estimate of $4.75 billion. With the consensus EPS estimate being $1.76, the EPS surprise was -86.93%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Lincoln National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Flows - Retirement Plan Services: -$272 million compared to the $214.94 million average estimate based on three analysts.
Net Flows - Annuities: -$874 million versus the three-analyst average estimate of -$649.38 million.
Net Flows - Life Insurance: $821 million compared to the $894.32 million average estimate based on two analysts.
Revenues- Net investment income: $1.49 billion versus the six-analyst average estimate of $1.48 billion. The reported number represents a year-over-year change of +12.7%.
Revenues- Insurance premiums: $1.57 billion compared to the $1.59 billion average estimate based on six analysts. The reported number represents a change of +1.2% year over year.
Revenues- Fee income: $1.36 billion versus the five-analyst average estimate of $1.37 billion. The reported number represents a year-over-year change of -10.7%.
Revenues- Retirement Plan Services: $327 million versus the four-analyst average estimate of $334.23 million. The reported number represents a year-over-year change of +3.5%.
Revenues- Annuities: $1.20 billion versus $1.16 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.
Revenues- Other Operations: $38 million versus $43.51 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
Revenues- Life Insurance: $1.72 billion versus the four-analyst average estimate of $1.70 billion. The reported number represents a year-over-year change of -2.2%.
Revenues- Group Protection: $1.39 billion versus the four-analyst average estimate of $1.39 billion. The reported number represents a year-over-year change of +4.1%.
Revenues- Group Protection- Net investment income: $84 million versus the three-analyst average estimate of $87.37 million.
View all Key Company Metrics for Lincoln National here>>>
Shares of Lincoln National have returned -6.5% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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